Key facts:
Currently SUI has 1,300,000 daily active wallets.
As of September 2024, SUI’s DEX volume has reached $510 million.
The first layer (L1) Sui network surpassed $900 million in total value locked (Total Value LockedTVL), as reported by the development team. This increase implied an increase of 3,285% in this metric since the launch of the blockchain in March 2023.
In turn, This brand of the SUI network positioned it as the eighth network in TVLsurpassing Polygon. That ranking It is led by Ethereum (ETH), with a TVL close to $50 billion, and followed by Tron (TRX) and Solana (SOL), with $8 billion and $5 billion respectively.
Total locked value refers to the accumulated value of assets that users deposit into smart contracts within a network.usually in cryptocurrencies or stablecoins. The capital can be allocated for the staking, pools of liquidity in exchanges of decentralized cryptocurrencies (DEX) and others.
Thus, TVL reflects an important measure of the health and adoption of a blockchain. A high TVL indicates that more users are using the network for their activities. DeFiwhich increases the liquidity of the system. In addition, application developers could be seduced by a network with these characteristics.
The historical evolution of TVL in Sui It can be seen in the following graph extracted from the analysis platform on-chain DeFiLlama.
The chart also shows a large decline in SUI TVL from late May to early August. This is because the value locked is expressed in dollars, so fluctuations in the SUI token price will affect this metric.
In the case of the August drop, this was related to the selling pressure caused by the release of tokens for the project’s early investors and contributors, as well as for the treasury of Mysten Labs (the company behind the Sui network), scheduled in the network unlocking schedule. This release caused the price of SUI to fall during that period, taking it from $1.75 to $0.50.
In the opposite direction, Coincidentally with the increase in its TVL, the price of the token It has rallied since the beginning of August to reach its current level of around $1.57. This increase in TVL was boosted by the recent rise in the price of SUI, which rose 40% in the last seven days.
Additionally, the growing interest in the Sui network could be expressed through other statistics, such as the number of daily active addresses and the volume in exchanges decentralized, extracted from the Artemis online site.
In the first case, the amount of wallets active daily reached 1,300,000, approaching its historical maximum of 1,600,000, on May 20, 2024. For its part, the volume on Sui’s DEX has rebounded since mid-August and is currently hovering around $510 million.
What is the reason for Sui’s growth?
Launched in March 2023 by Mysten Labs, Sui aims to offer an infrastructure with the capacity to perform between 10,000 and almost 300,000 transactions per second (TPS) and with a completion time (Time to FinalityTTF) which averages 400 milliseconds. The latter is an indicator of how quickly a transaction is definitively confirmed on the network.
This dataprovided by the Sui chain’s own website, can be seen in the following image, where the two metrics mentioned in the previous paragraph are also compared with other networks, such as Ethereum, Solana and Avalanche.
Thus, handling a large number of transactions in parallel and at high speed is a crucial element for a network. This could be one of the reasons that would explain the growing adoption of Sui, positioning it as an attractive solution for decentralized applications (dApps) and projects that require high scalabilitylike games on-chain or applications DeFi.
Here it would be prudent to point out that, in a report Released in January 2024, Sui explained that it processed 6,000 TPS and 65 million transactions in one day. Regarding the latter, Artemis’ latest data shows figures of around 30 million transactions per day.
Continuing with the comparison made by the previous image, Ethereum reflects an average of daily transactions of 1,100,000 and Solana 35,000,000, According to The Block Data. Therefore, it far surpasses Ethereum and is positioned as a competitor against Solana.
On the other hand, an important milestone of this network occurred on September 17, 2024, when the company USDC issuer Circle announced that its stablecoin Sui would arrive soon.
This fact, together with the update and introduction of Mysticeti, a new consensus protocol on the Sui network, led to a 42% monthly increase in the token native of this chain, reported by CriptoNoticias.
In short, technical advancements, coupled with a growth in its TVL and other metrics, have made Sui an option that could be attractive to developers or investors within the decentralized finance ecosystem.
